[Population Decline Hits Industry] Even Volkswagen No Longer Effective with 'Youth Marketing'

As Purchases Drop Among Those Under 30,
Competitiveness Declines Leading to Lower Rankings

The decline in new car purchases among young people is not limited to domestic cars. The imported car market is also struggling with the departure of young customers. Among imported car brands, Volkswagen, known as Germany's people's car, shows a notable decrease.

According to sales statistics from the Korea Imported Automobile Association on the 9th, while the imported car market is steadily growing, the number of young customers is decreasing. The number of new cars purchased by customers aged 30 and under was 68,453 in 2015, but dropped to 43,942 from January to November last year. Even including December sales, it does not reach 50,000.

Ten years ago, in 2013, the brand that sold the most to consumers aged 30 and under was the German Volkswagen. Among total individual sales, more than half, 54% (11,235 units), were purchased by customers aged 10 to 30. Including corporate demand, the total sales volume of the German brand BMW was higher, but in terms of individual sales focused on young customers, Volkswagen led.

[Photo by Yonhap News, Reuters]

Recently, the situation is different. Based on this year's sales to individual customers aged 30 and under, Volkswagen lags behind not only BMW but also relatively more expensive brands such as Mercedes-Benz, Audi, Volvo, and Mini. Ten years ago, Volkswagen placed five models within the top 10 in imported car model sales, led by hatchbacks like the Golf and Polo, and the compact sedan Jetta. Last year, only one model, the Tiguan Allspace, ranked 24th, making it difficult to find Volkswagen models among the top ranks.

This is interpreted as a result of a sales strategy focused on diesel models that no longer aligns with recent domestic trends, and an increased preference for high-end brands among potential imported car buyers. In other words, more people who buy imported cars now prefer expensive imported cars. The number of young customers who want to buy foreign cars but lack the money has decreased. Even now, young people who buy foreign cars tend to have deep pockets and prefer more expensive cars.

A representative from the completed car industry said, "Entry-level models targeting young customers, such as compact cars or small SUVs, are often actually purchased by middle-aged or retired groups," adding, "Considering that the actual drivers of corporate demand, which is not captured in age statistics, are middle-aged, it is difficult for marketing aimed at young people to be effective."

This content was produced with the assistance of AI translation services.